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12 May 2012

Import of Urea

Import of Urea in the country is restricted and permitted through State Trading Enterprises (STEs) i.e. Mineral and Mines Trading Corporation (MMTC) Limited, State Trading Corporation Limited (STC) and Indian Potash Limited (IPL). The Foreign Trade Policy (FTP) provides that Director General of Foreign Trade (DGFT) may grant an authorisation to any other person to import the goods covered under STE provisions. Import of urea for direct agriculture use is made on Government account through these STEs. Urea imported on Government account for direct agriculture use is sold to the farmers at statutory notified Maximum Retail Price (MRP) and the difference between cost incurred and MRP is borne by Government as subsidy on urea. Besides import of urea on Government account, the complex fertiliser manufacturers in the country are also importing urea for manufacturing of various grades of complex fertilizers in their plant through STEs.

M/s Coromandel International Limited (CIL) is also importing about 2.50 lakh to 3.00 lakh MTs urea per annum for manufacturing of complex fertilizers in their plant at Vishakhapatnam/Kakinada. The import of urea by any manufacturers of complex fertilizers either directly or through any of the STEs have no impact on Government exchequer as government does not pay any subsidy for such imports. Government, on the request of CIL has allowed them to import urea directly for manufacturing of complex fertilizers in their plant at Vishakhapatnam/Kakinada as per the provisions of FTP.

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Rajya Sabha today.